KSEB ‘power’less to pay pension dues, a la KSRTC

Until now, the KSEB has not defaulted on pension payments which runs into more than I800 crore a year 

Published: 10th February 2018 01:05 AM  |   Last Updated: 10th February 2018 06:33 AM   |  A+A-

Image used for representational purpose.

By Express News Service

THIRUVANANTHAPURAM: Now, the cash-strapped KSRTC which is labouring to pay the pension liabilities seems to have company - the state-run KSEB is plagued by the same problem. N S Pillai, the KSEB’s newly-appointed CMD, said in a letter to the trade unions the board is facing various technical and financial challenges. As per the statutory audit report for 2016-17, the net loss of the power company stood at `1,877 crore.  The situation is such the KSEB has not been able to remit its share to the Master Pension and Gratuity Trust, says the letter. The letter goes on to request the support of the trade unions for bailing out the KSEB. 

Until now, the KSEB has not defaulted on the pension payments which runs into more than  `800 crore a year. The KSEB has been meeting this commitment from its revenue, a practice  frowned upon by the Kerala State Electricity Regulatory Commission(KSERC). Though a pension trust had been formed when the KSEB was transformed into a company, the KSEB has been unable to make any payments to it.  At the time of  forming the Master Pension and Gratuity Trust, the potential liability was pegged at `12,419 crore. 

Of this, the KSEB’s share was `8,144 crore with the government contributing the remaining amount.  The government’s share was to be adjusted against the electricity duty due to the government from the KSEB. 
The full contribution to the fund need only be made in 15-20 years. As per the 2016-17 figures, the pension liability had gone up to `16,417 crore. 

Stay up to date on all the latest Kerala news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp